Why do some markets have more firms than others?
What will be an ideal response?
It depends on a number of factors. One involves the costs of the industry-in some industries, given consumer demand for the product, it makes sense for there to be more firms in some markets than in others. Other factors include barriers to entry-some markets are easier to enter than are others.
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For which of the following is demand most likely to be price inelastic?
a. lamb b. meat c. veal d. pork e. beef
Rational individuals prefer to consume goods during the current year rather than in the future because of:
a. positive time preference. b. positive consumption preference. c. high expected rate of inflation. d. high market rate of interest.
The three components of personal consumption expenditures are
a. durable goods, nondurable goods, and services b. durable goods, food, and housing c. durable goods, nondurable goods, and housing d. durable goods, services, and food e. durable goods, services, and transportation
Decision makers engage in marginal thinking by
What will be an ideal response?